Lifetime guarantees? End may be near

Companies may pull plug as open-ended promises grow increasingly costly

Some lifetime guarantees last longer than others.

A small minority of shoppers who have returned items salvaged from yard sales, or purchased decades ago to get an upgraded version or a cash refund have left some retailers saying enough is enough.

More retailers are changing once generous return policies. Lifetime guarantees were thrust into the forefront last month when L.L. Bean said that in the wake of increasing abuse, it was putting a cap on its legendary open-ended pledge, limiting most returns to one year—a move that prompted outrage and at least one lawsuit.

Bean follows outdoor gear and clothing retailer REI, which dropped its lifetime guarantee in 2013. Membership warehouse retailer Costco began limiting its lifetime returns policy to just 90 days for certain major electronics like TVs and computers.

“Part of the reason is that retailers are very cost conscious and have become increasingly concerned about the amount of abuse associated with lifetime guarantees,” says Neil Saunders, managing director of the retail consultancy GlobalData.

Sticking with guarantees

Yet some retailers are holding firm. “Our policy is guaranteed period, and we mean every word,” says Michele Casper, spokeswoman for outerwear retailer Lands’ End. “It is unconditional, and it’s part of how we do business.”

In the 1980s, Lands’ End sold an iconic London cab that was featured on the cover of its holiday catalog for $20,000. When the customer reached out to the retailer 21 years later, Lands’ End gave him his money back and reclaimed the car — which now sits at the company’s main office in Dodgeville, Wis.

The outerwear company Patagonia will charge a small fee to fix items damaged from regular wear and tear, the company will take back items years after they were purchased, attempt to repair them and if it decides that the item is worn out and can’t be fixed, it will talk with the shopper about replacing it or receiving a gift credit.

Patagonia, which counts preserving the environment as part of its mission, also recycles items, and will buy back and clean products that are still in good shape, putting them up for sale on its site WornWear.com.

Yard sale returns

It was returns of a different stripe that drove L.L. Bean to change a policy that had been its hallmark since 1912.

The company’s executive chairman, Shawn Gorman, said in a letter to customers Feb. 9 that “a small but growing number” were taking advantage of L.L. Bean’s open-ended guarantee, seeking refunds for old, worn out products and items picked up at yard sales.

Now, L.L. Bean shoppers will have just one year to return a product and must show proof of purchase, though the company will try to resolve issues beyond the one year time frame if an item is defective.

A dying breed

REI changed its open ended returns policy in 2013.

Since then, customers have only been able to bring back or exchange items they were dissatisfied with for a year after purchase.

For outdoor electronics, the window is even smaller — 90 days — though an item with a defect in its materials or the way it is made can be brought back at any time.

“Our returns policy is still among the best in the industry,” REI said in a statement. While Costco continues its popular lifetime returns policy for most products, it imposed a 90-day limit for certain major electronics like TVs, camcorders, and computers “due to the rapid technology changes,’’ it said in a statement.

The warehouse retailer added that after the change, it began offering a second year warranty on TVs, appliances and computers, and a “concierge program’’ that provides free technical assistance.